TASK 1: COMPENSATION STRATEGY PDF

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TASK 1: COMPENSATION STRATEGY passing assignment ...

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Compensation and Benefits: Endothon Task Course Code: C236 Student Name: Carly Bunty Student ID: 001312412 Date: 3 December 2020 Program Mentor Name: Elizabeth McKinney

A. Revise the following to include the three new positions and their salaries, as well as to show any changes to existing salaries. **yellow highlight= the 3 new positions Position Title Partner 1 Partner 2 Partner 3 Lead software designer 1 Software designer 1 Software designer 2 Human resources manager 1 Brand Manager Software designer 3 Software designer 4 Customer service rep 1 Software designer 5 Software designer 6 Customer service rep 2 Operations supervisor 1* IT technician 1 (help desk) Administrative assistant 1 - billing Customer service representative 1 IT technician 2 (help desk) Administrative assistant 1 - general Customer service representative 2* IT technician 3 (help desk) Customer service representative 3

Current Pay Rate $300,000.00 annually $250,000.00 annually $200,000.00 annually $190,000.00 annually $160,000.00 annually $135,810.00 annually $124,340.00 annually $107,370.00 annually $100,000.00 annually $98,850.00 annually $83,340.00 annually $81,500.00 annually $78,690.00 annually $64,000.00 annually $60,000.00 annually $51,560.00 annually $50,960.00 annually $48,589.00 annually $43,888.00 annually $40,872.00 annually $37,107.00 annually $32,240.00 annually $31,500.00 annually

A1. Justify the placement and salaries of the three new positions. 1. The Brand Manager description is the most similar to the Marketing Manager position in the Market Rewards Survey. For this salary, I would put this position at $107,370. This number comes from the Market Rewards Survey at the 25% rate of the Marketing Manager position. I chose to use the 25% rate because the position requires 5 years of marketing experience but no more than 3 years of managerial role experience. This salary will help attract more candidates with higher sales experience rather than candidates with more leadership/management experience.

2. The Product Sales Representative (1) requires a bachelor’s degree in business management/admin and at least 3 years sales experience. The position also requires a large amount of traveling time. For these reasons, the person chosen for the position should have a larger amount of experience that exceeds the basic requirements given in the job description. This salary should also be placed at the 25% rate which would be $83,340. 1

3. The second Product Sales Rep (2) position also requires a bachelor’s degree and some sales experience with a lot of traveling. For this position, the salary will be based on the lower 10% rate in the Market Rewards Survey at $63,690 but pushed up to $64,000. In doing this, it will attract mostly entry-level applicants and will allow the applicant to move up within the company and get to the next level while saving the company money.

B. Using the 23 positions, create a pay grade and ranges table. Pay Grade Grade 1

Grade 2

Grade 3 Grade 4

Grade 5 Grade 6 Grade 7

Positions Customer Service rep 3 IT Tech 3 (help desk) Customer service rep 2 Admin. Assistant 1 (general) IT Tech 2 (help desk) Customer service rep 1 Admin. Assistant 1 (billing) IT tech 1 (help desk) Operations supervisor 1 Customer service rep 2 Software designer 6 Software designer 5 Customer service rep 1 Software designer 4 Software designer 3 Brand manager Human Resource manager Software designer 2 Software Designer 1 Lead software designer Partner 3 Partner 2 Partner 1

Minimum

Midpoint

Maximum

$30,000.00

$36,000.00

$42,000.00

$41,000.00

$47,500.00

$54,000.00

$50,000.00

$57,500.00

$65,000.00

$62,000.00

$92,000.00

$122,000.0 0

$120,000.00

$272,000.00

$150,000.00

$170,500.00

$189,000.00

$296,500.00

$152,000.0 0 $191,000.0 0 $350,000.0 0

2

B1. Describe a strategy to address original salaries now found outside the proposed ranges. Strategy: Salaries that are now below the minimum amount within that pay grade will get a raise to meet the minimum salary requirement under that pay grade. Salaries that are over the max. amount within their pay grade will have their salaries frozen to that amount. Salaries over the minimum had the option to take part in new programs that will help them advance within the company and get a promotion. In doing this, the employee will eventually be bumped up to the next pay grade. Any new employee hired from this point on will be hired within the given pay grade ranges for the position they are hired for.

B2. Justify your pay grades and ranges, commenting on attraction and retention strategies. Pay grades 1 and 2 have relatively low ranges mainly because they are mostly entry-level positions. They are not meant to be long term positions and are almost mandatory to move up from within the company. While employees hold these positions, they have the option to be cross trained while developing essential skills they will need when they advance in the company. Because these salaries are higher than the typical market rate, candidates who intend to move up within the company and are going to be easy to train will be most attracted to these positions. As the pay grades increase, so do the salaries and ranges. As a company who wants to lead the market and keep the best employees, Endothon gives their employees’ salaries that will drive them to improve and want to do their best. In having larger pay ranges, it provides the employees with the information they need to know their position in the company and how they can advance in the future. It also allows other benefits to be given to certain employees in those ranges to keep employees happy and working their best.

C. Recommend one distinct variable pay option for each of three pay grades, including a justification of why each recommendation would motivate individuals in that particular pay grade. Recommendation 1: For pay grades 1 and 2, bonuses will be given for certain tasks/achievements completed within each department. -The top 3 Customer service representatives will receive a $250 bonus for having sold the most products in that quarter. -Administrative assistants who do not call off for a month (excluding paid time off and vacation time) will earn an extra paid day off for each month with perfect attendance. 3

-IT department employees who solve over 85% of technical issues in less than 24 hours of submission will receive an added $300 on their paycheck.

Justification 1: These bonuses are important to lower grade level employees because they are usually newer to the company and are not as dedicated as workers who have been with the company for a long time. They are also paid significantly less and will work harder for extra money opportunities.

Recommendation 2: Employees in pay grade 3 will make their own goals and expectations to follow. Depending on how these goals are met, quarterly bonuses will be given to the employees in this pay grade at 5%-15% depending on salary and time with the company.

Justification 2: Employees within this pay grade have most likely been with the company for a while and are highly skilled at what they do. Losing these employees would hurt the company. In order to keep them, providing them with bonuses for goals they set to push themselves will keep them motivated and focused.

Recommendation 3: Pay grades 4-7 will have options for profit-sharing bonuses, and also retention bonuses. Both of these bonuses will be based on which pay grade they are in and how long the employee has been with the company. Justification 3: These are likely employees that have been in the company the longest and have the most experience and impact on the company. To show them that Endothon appreciates their efforts and the time they have spent in the company, they will give them these bonus options.

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